The Patersons Bought a Home That Was Newly Constructed in 2007

Multiple Choice

The Patersons bought a home that was newly constructed in 2007 for $275,000.They sold the home in 2015 for $255,000.Which of the following statements is correct regarding the sale of the house?

A) The 2015 sale increased 2015 GDP by $255,000 and had no effect on 2007 GDP.
B) The 2015 sale reduced 2015 GDP by $20,000 and had no effect on 2007 GDP.
C) The 2015 sale increased 2015 GDP by $255,000;and caused 2007 GDP to be revised downward by $20,000.
D) The 2015 sale affected neither 2007 GDP nor 2015 GDP.